Chapter 13 Bankruptcy Alief Texas
THE MOST COMMON QUESTIONS ASKED ABOUT CHAPTER 13
What is required for court approval of a chapter 13 plan?
Chapter 13 Bankruptcy Alief Texas Attorney Eric Southward explains, the court will confirm a chapter 13 plan if: (1) the plan complies with the legal requirements of chapter 13, (2) all required fees, charges and deposits have been paid, (3) the plan has been proposed in good faith, (4) each unsecured creditor will receive under the plan a least as much as he would have received had the debtor filed under chapter 7, (5) it appears that the debtor will be able to make the required payments and comply with the plan, and (6) each secured creditor has been dealt with in the manner described in the answer above.
When does a debtor have to appear in court in a chapter 13 case?
All debtors have to appear in court at least once for a hearing called the meeting of creditors. This is where the Trustee who has been appointed to the case will review the paperwork. Attendance at an orientation program set by the trustee’s office may be required. Some debtors may have to appear again for a hearing on the confirmation of the debtor’s chapter 13 plan. The meeting of creditors is held about a month after the case is filed. The meeting of creditors is is held in downtown at the United States Federal Court Building, 515 Rusk Room 3401 on the 3rd floor, Houston, Texas 77002. The confirmation hearing will also be held at the United States Federal Court Building, 515 Rusk, Houston, Texas at a later date. The debtor will receive notice of the dates and times from the court and our office.
What if the court does not approve a debtor’s chapter 13 plan?
If the court will not approve a chapter 13 plan proposed by a debtor, the debtor is permitted to modify the plan and seek court approval of the modified plan. If the debtor does not wish to change his proposed plan, he may either convert the case to a chapter 7 case or dismiss the case. If the court refuses to approve a plan, it will usually give the reason for its disapproval so that the plan may be appropriately modified so as become acceptable.
How are the claims of creditors handled under chapter 13?
Creditors must file their claims with the bankruptcy court within 90 days after the firs date set for the meeting of creditors in order for their claims to be allowed. Unsecured creditors who fail to file claims within that period will be barred from filing a claim, and after the completion of the plan their claims will be discharged. A debtor may file a claim on behalf of a creditor if he wishes to do so. When the claims have been filed, the debtor is notified and given an opportunity to file objections to any claims that he disputes. When the objections have been ruled on, and the claims approved by the court, the chapter 13 trustee will begin making payments to unsecured creditors as called for in the chapter 13 plan. Payments to secured creditors and to special classes of unsecured creditors may begin earlier if desired.
What if a debtor incurs new debts or needs credit during a chapter 13 case?
Only two types of credit obligations or debts incurred after the filing of the case may be included in a chapter 13 plan. These are: (1) debts for taxes that become payable while the case in pending, and (2) consumer debtors arising after the filing of the case that are for property or services necessary for the debtor’s performance under the plan and that are approve in advance by the chapter 13 trustee. Any other debts or credit obligations incurred after the case if filed must be paid by the debtor outside the plan. Some courts issue an order precluding the debtor from incurring any new debts during the case unless they are approved in advance by the chapter 13 trustee. Therefore, if a debtor needs credit or wishes to incur a debt after the case has been filed, he should obtain the approval of the chapter13 trustee beforehand.
What should the debtor do if he moves during the course of a chapter 13 case?
He should immediately notify the bankruptcy court and the chapter 13 trustee in writing of his new address. Most communications in a chapter13 case are by mail, and if the debtor fails to receive an order of the court or a notice from the chapter 13 trustee because of a faulty address, the case may be dismissed. Many courts have change-of-address forms that may be used when the debtor changes his address.
What if the debtor later decides to discontinue the chapter 13 case?
A debtor has the right to either dismiss a chapter 13 case or convert it to a chapter 7 case at any time, regardless of his reason for doing so. However, if a debtor simply stops making required chapter 13 payments, the court has the power to compel the debtor, or his employer, to make the payments ad to comply with the orders of the court. Therefore, if a debtor wishes to discontinue his chapter 13 case, he should do so in an orderly manner, preferably through his attorney.
What happens if a debtor is unable to complete his chapter 13 payments?
A debtor who is unable to complete his chapter 13 payments has three options: (1) he may dismiss the chapter 13 case, (2) he may convert the chapter 13 case to a chapter 7 case, or (3) if he is unable to complete the payments due to circumstances for which he should not justly be held accountable, he may seek to close the case and obtain the second type of discharge which was described above.
Our toll-free telephone number is at 1-866-912-9832. You need to learn about all of your options including information about credit, debt, bill consolidation services and federal bankruptcy law. Please call us at 1-866-912-9832 so that we can discuss your case.You can also visit our web site: www.busby-lee.com. Our attorney fees are reasonable, competitive, and court- approved. It is important that you call us soon. Our office is conveniently located near the Galleria and Highway 59 on Hillcroft between Richmond and Westheimer. We also maintain a branch Katy, Texas office at 1804 Snake River Road, Suite, C Katy, Texas 77449 Call us toll-free at 1-866-912-9832 for directions to our office.
We provide bankruptcy services in the greater Houston metro area including the cities of Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.
We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton